OnyxTrader

Wave 3 The Real Economy

Short
CURRENCYCOM:US500   S&P 500
Common things seen in chatrooms and heard on Bloomberg.
"Its all priced in"
"Don't fight the Fed"


Uncommon things not heard on Bloomies and the cause of Permabull cardiac arrests.
"Wave 3 is coming" ( Elliott )
"Wave 2 as well" (Covid-19)
"Oh look we bounced off a fib level"


I'll put it simply, we need to retest the lows.
The rally has been far too rapid and steep to be sustained.
Unfortunately the likelihood of the most recent trend being wave 4 ended when we broke past 2850.
It seems we have reached the top of wave 2, bouncing pretty much on the 0,618 fibonacci.
An extreme correction in Elliott theory, but common in wave 2 countertrend movement.
This means the 3rd wave lower is on the cards,

My targets remain
2800
2750
2720 and a break through this is a move lower.